A cursory glance at any property market segment in a newspaper these days is enough to make anyone reach for the brandy. As the end date of the stamp duty holiday looms, more and more commentary is predicting impending catastrophe. It’s certainly true that there are challenges ahead in the market, not least in Malling, but when it comes to the property market, challenges always go hand in hand with opportunities.
Stamp duty is very much top of the property agenda now. Even though the holiday comes to an end at the end of March, the lengthy process of conveyancing means any offers accepted now are unlikely to be completed before the deadline. In terms of what that means in pounds and pence, the average property value of a home here is £398,000, so if a transaction happens after 31st of March 2021, the average stamp duty bill rises from nil to £9,885.
The true impact remains to be seen. While these additional charges are not inconsiderable, many people will perceive the property to still be worth buying, especially if they have emotionally connected to the home and can come up with the extra money. Mortgages remain historically cheap, and the quality of the mortgage deal often has a larger bearing on the cost of the property than stamp duty alone.
The government’s logic for not extending the stamp duty holiday, or even permanently reducing it, is unclear. For anyone working in residential property, the positive effects to the wider economy of high transaction rates are well known. Not only does it support the myriad industries inextricably intertwined with the house moving process, but it also supports a more geographically flexible workforce, which may be more important than ever post-covid and post-Brexit.
Our experience suggests that Malling is very well placed to weather any storm which may come over the horizon. Anyone who knows the area will understand why we’re so confident. Not only do we have a fantastic balance of people, jobs and housing stock in the local area, but we’ve got a proven track record of bouncing back. After the financial crisis of 2009, prices in some parts of the country took nearly a decade to recover, and sales levels never did. However, in our area the strong pull factors meant we were able to return to pre-credit crunch levels relatively swiftly.
The market faces a number of challenges beyond stamp duty including flats with fire safety issues struggling to sell and help to buy changing to only be for first-time buyers. However, one thing we’ve learned from the pandemic is that people now have a renewed interest in their home and how it affects their quality of life. At a time when huge parts of the economy have been untouched by lockdowns and mortgages remain available, we think the intrinsic attractiveness of the Malling property market will shine through.
Read More ArticlesView our Blog
Are problems afoot on the second rung of the housing ladder?
In The Weald, the gap was £82,700 in 2017. By the autumn of 2020, it had grown to £96,100, equivalent to a change of £13,400.
Top five per cent of properties in the local area
We were interested in looking at the starting prices of the top five per cent of properties in the local market. This chart displays the main house types side-by-side so you can see how they sit relative to one another.
Has Maidstone’s premium market changed in the last 20 years?
In Maidstone & Barming, the average price of a property has risen by 156 per cent since 2000.
Lifecycle of our residents
You might think you know our area inside out, but this chart might make you think again. We’ve split the area according to where people and families are in their lifecycle. This has a big impact on the housing market, with people needing different types of housing at different points in their life.
Index of annual sales levels by type
In this chart, we’ve compared sales levels for flats and houses in the last few quarters. We’ve opted to look at an index, rather than absolute numbers, to expose the underlying patterns. This means that both property types start at 100 at the start of the period, and you can see how they’ve changed since, on an equal basis.
An index of prices by type over time
Over the last two years, we’ve seen pretty strong performance in the local market. We wanted to see how different property types have performed, so we indexed the values at the start of the period. Property data updates quite slowly, so we’ve estimated the last 3 months.
How often do people move property in Headcorn and Bearsted?
The average amount of time someone lives in their property in Headcorn or Bearstead is actually 19 years.
An index of sales split by house and flats
This chart shows how sales levels in the local area sit now compared with seven months ago. We’ve indexed all property types so they start at the same point so you can easily see how they’ve moved in relation to each other.
Local house types
Property types are a handy measure of the shape of the market in a local area. For example, areas with lots of flats tend to be urban in character because there is huge pressure on land. A large number of detached homes means that the area is suburban and not very densely populated.
Register for a property alert
Complete our form and we will notify you as soon as a property comes on the market that matches your criteria.